Codere Financial Restructuring: Working With Houlihan Lokey, Clifford Chance, PJT Partners, Milbank

Codere Financial Restructuring: Working With Houlihan Lokey, Clifford Chance, PJT Partners, Milbank

Update 1: Codere's liquidity shortfall is estimated at £146M-£180M with £200M of new super senior money alongside partial equitization of SSNs leading to a 50% reinstatement, 70% SSN recovery under base case and 56% in low case. Click through and request a trial to read the full update here: https://reorg.com/cash-flow-model-codere-liquidity-shortfall-estimated-to-be-e146m-e180m/ 
Starting negotiations for a new round of debt talks with bondholders due to liquidity pressure from Covid-19 restrictions, Spanish gaming company Codere is working with Houlihan Lokey and Clifford Chance. The group’s bondholders are working with PJT Partners and Milbank. The advisors are focusing on new money needs and on how much debt the business is able to sustain. As part of Codere’s restructuring, the group must maintain a minimum monthly liquidity covenant of €40 million in cash, cash equivalents and borrowings available under credit facilities. They should have €40 million to €50 million of liquidity at the end of March and April 2021 after the coupon payments. Click through to read more on Codere's current situation: https://reorg.com/codere-starts-debt-negotiations/

Chapter 11 Recap: Week of Feb. 15 2021

Chapter 11 filings have picked up slightly in recent weeks, but remain down around 40% year-over-year as measured by First Day by Reorg. The drop appears to be due to what has become a perfect storm for distressed investors: government stimulus, the expectation of even more government stimulus and frothy capital markets. It’s hard to envision a marked pickup of in-court activity with high-yield offerings still booming and no end in sight from investors chasing yield (down to 3%?! for some “high-yield” issuers). One resulting wildcard, of course, is inflation and that could end up being a major narrative for 2021. We are also watching a number of REITs that could end up in chapter 11 this year and tracking how the change in administration in Washington D.C. may affect other industries, particularly energy.  Even though new case filings are slowing, bankruptcy lawyers have managed to stay busy with a series of lengthy trials: disputes over Wells Fargo’s prepetition enforcement actions against CBL and confirmation battles in Chesapeake, Speedcast and Highland Capital Management. We’re also watching the dueling plans in Garrett Motion and Hertz’s creative use of chapter 15 and European restructuring processes. And, if you are interested in a more thematic approach to bankruptcy news, be sure to check out our regular Court Opinion Review. Sign up for more updates here: https://reorg.com/resources/reorg-on-the-record/
Greenway Health Operational Issues and Class Action Lawsuit Lead To Lower EBITDA

Greenway Health Operational Issues and Class Action Lawsuit Lead To Lower EBITDA

Anticipating a lower EBITDA and revenue in 2021 compared to 2020, Tampa, Fla.-based electronic health records vendor Greenway Health continues to face operational issues and a class-action lawsuit from the misrepresentation of the capabilities of its electronic health records product Prime Suite. The expected 2021 EBITDA is between $70 million and $80 million and their revenue is expected at about $300 million amid lower demand due to the pandemic. With $60 million of liquidity including $30 million in cash and $30 million available under its revolver, Greenway Health’s financial performance in the past year led a few lenders to consider organizing, but a formal group was never formed. Adding to the company’s financial distress, the Department of Justice also entered into a corporate integrity agreement with the company which forces Greenway Health to provide its customers the latest version of Prime Suite for free or migrate them to other Greenway software products for free, or release them from their contracts. Click through to read more on Greenway Health’s current situation: https://reorg.com/greenway-health-ebitda/

Dalian Wanda Commercial Management Corporate Bonds

Planning to issue around RMB 20 billion ($3.096 billion) to RMB 30 billion corporate bonds this year to help redeem a total of RMB 36.7 billion bond maturities in 2021 with the rest of the funding from the company’s own resources, Dalian Wanda Commercial Management aims to list on the A-share market after its privatization from the Hong Kong stock exchange in 2016. Interest-bearing debt of Dalian Wanda Commercial Management had decreased by RMB 8 billion over a year earlier to stand at RMB 175 billion as of the end of 2020, plus issuances in 2020 from bank investors subscribed to about 60% of the company’s bonds, while non-bank institutions subscribed to 40%. Click through to read more on Dalian Wanda Commercial Management's current situation: https://reorg.com/dalian-wanda-commercial-management-plans-to-issue-rmb-20b-to-rmb-30b-corporate-bonds-in-2021/ 
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